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作者：Horton, Joanne; Serafeim, George; Wu, Shan
作者单位：University of Exeter; Harvard University; China Europe International Business School
摘要：We study how career concerns influence banking analysts' forecasts. Banking analysts' first (last) earnings forecast of the year is relatively more optimistic (pessimistic) for a bank that could be their future employer. This pattern is not observed when the same analysts forecast earnings of banks unlikely to be their future employer. We use the Global Settlement as an exogenous shock on career concerns and show that this forecast pattern is more pronounced after the Settlement. Moreover, we ...
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作者：Iselin, Michael; Nicoletti, Allison
作者单位：University of Minnesota System; University of Minnesota Twin Cities; University of Pennsylvania
摘要：This paper examines whether public bank managers change both the composition and classification of their investment portfolios after SFAS 157. We first show that non-agency mortgage-backed securities (MBSNA) are the asset class most likely to be measured using level 3 inputs, which are based on unobservable information. We then find that relative to a control sample of private banks, public banks altered their investment portfolios in a manner that reduced the percentage of MBSNA holdings for ...
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作者：Kubick, Thomas R.; Lockhart, G. Brandon; Mills, Lillian F.; Robinson, John R.
作者单位：University of Kansas; Clemson University; University of Texas System; University of Texas Austin; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：We investigate whether geographic proximity between corporate headquarters and IRS regional offices affects corporate tax avoidance and the likelihood and productivity of IRS examinations. Using geographic distance to represent information asymmetry, we find that corporations avoid more tax when located closer to the IRS unless they are close to an IRS industry specialist This finding is consistent with taxpayers believing proximity provides them with an information advantage over the IRS. Fro...
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作者：Berger, Philip G.; Minnis, Michael; Sutherland, Andrew
作者单位：University of Chicago; Massachusetts Institute of Technology (MIT)
摘要：Lending concentration features prominently in models of information acquisition by banks, but empirical evidence on its role is limited. Using bank-level loan exposures, we find banks are less likely to collect audited financial statements from firms in industries and regions in which they have more exposure. These findings are stronger in settings in which adverse selection is acute and muted when the bank lacks experience with an exposure. Our results offer novel evidence on how bank charact...
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作者：Matsumoto, Dawn A.; Shaikh, Sarah
作者单位：University of Washington; University of Washington Seattle
摘要：Shroff et al. (2017) examine whether a richer peer information environment reduces the cost of capital for firms with limited firm-specific information and whether this effect decreases as firm-specific information becomes more prevalent. Although much of the evidence supporting their hypotheses is based on a small highly idiosyncratic sample of firms issuing initial public debt, the authors provide corroborating evidence using samples of IPO and SEO firms. However, two research design choices...
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作者：Jiang, Xu; Yang, Ming
作者单位：Duke University
摘要：We characterize the properties of optimal accounting rules in a signaling game. An impatient firm sells shares to competitive investors. The firm can signal its private information about the fundamental by retaining a fraction of the shares. In addition, the firm can commit to disclosing information according to a set of accounting rules chosen ex ante. Information disclosure reduces signaling cost so that perfect disclosure is optimal. When perfect disclosure is impossible, the optimal accoun...
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作者：Nikolaev, Valeri V.
作者单位：University of Chicago
摘要：Carrizosa and Ryan (2017) explore the use of private information covenants, which contractually oblige borrowers to disclose projected and intra-quarter financial statements. The authors provide evidence that creditors acquire private information about borrowers via these covenants. This facilitates the monitoring process, subject to a cost-benefit tradeoff. I discuss how the study fits into the literature and contend that the costs associated with information covenants are less clear and have...
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作者：Kim, Jaehyeon; Kim, Yongtae; Zhou, Jian
作者单位：Deakin University; Santa Clara University; University of Hawaii System; University of Hawaii Manoa
摘要：We predict that managers of firms in countries where languages do not require speakers to grammatically mark future events perceive future consequences of earnings management to be more imminent, and therefore they are less likely to engage in earnings management. Using data from 38 countries, we find that accrual-based earnings management and real earnings management are less prevalent where there is weaker time disassociation in the language. Our study is the first to examine the relation be...
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作者：Hope, Ole-Kristian; Hu, Danqi; Zhao, Wuyang
作者单位：University of Toronto; BI Norwegian Business School; Northwestern University
摘要：This study examines how short-selling threats affect auditors. During 2005-2007, the SEC ordered a pilot program in which one-third of the Russell 3000 index firms were arbitrarily chosen to be exempted from short-sale price tests. As a result, these stocks faced significantly higher short-selling threats. We implement a difference-in-differences test with firm fixed effects to show that auditors react to the increased threats and charge higher audit fees to the pilot firms. Further, we find t...
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作者：Levy, Hagit; Shalev, Ron
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); New York University
摘要：This study investigates how firm's bond repurchase objective affects its choice of repurchase method. Unlike tender offers, open-market repurchases are not pre-announced and buyer's identity is unknown to the seller. We provide evidence that firms are likely to repurchase on the open-market when bonds are mispriced and when firms seek to manage their financial reports, either to meet earnings targets or avert debt covenant violations. When firms seek to amend indenture terms, they prefer tende...
